|Follow us on:|
Steps toward establishing the development bank are expected to be finalised at the upcoming Fifth Annual BRICS Summit in Durban, South Africa.
South African officials have signaled that a BRICS-led bank could mobilise domestic savings and co-fund infrastructure in developing regions.
At a time when many countries were succumbing to the global financial crisis, with some resorting to currency manipulation, they highlighted the importance of the “pooling of members’ foreign exchange reserves with the view of using them to support each other at times of balance of payments or currency crisis”.
BRICS countries currently hold reserves totaling $4.5 trillion.
In an exclusive op-ed to The BRICS POST last week, South African minister of international relations and cooperation Maite Nkoana-Mashabane said that one purpose of this bank would be to supplement the existing efforts of multilateral and regional financial institutions for global growth and development.
“Such a new development bank could complement existing institutions and address gaps and challenges in critical sectors. President Zuma has already articulated South Africa’s strong support for this initiative and other African leaders have also indicated their keen interest.”
South Africa has indicated that it would like to host the bank.
Basu, who was in Johannesburg for a public lecture, also address South Africa’s role in the global economy.
“South Africa needs to focus on growth and investment,” he said.